NU Online News Service, April 20, 10:51 a.m. EDT

Homeowners rate increases granted to State Farm in Florida and Allstate in Mississippi are credit positive for insurers, as profitability in that line of insurance has been under pressure for the past several years, according to Moody’s.

In its “Weekly Credit Report,” Moody’s notes that personal-lines insurers have experienced earnings volatility over the past several years, mainly due to losses from catastrophes and other weather events. “While the 2009 and 2010 hurricane seasons were quiet, insurers experienced historically high frequency and severity of non-catastrophic weather losses” such as wildfires, lightning storms, tornadoes, hail and winter storms.

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